Can Semir'S Clothing Escape From Several Evil Doors?

In January 24, 2011, Zhejiang Semir dress Limited by Share Ltd (hereinafter referred to as Semir dress) IPO application has been successful.

But on the eve of the meeting, insider insiders reported to the media that Semir's clothing tax evasion in 2003 ~2009 was about 3 billion yuan, and that the tax department is conducting an investigation.

Verified by the relevant media, some local tax authorities have confirmed that the information reported by the informants relates to the local facts.

In addition, Semir clothing also has cash flow shrinking, the main business expansion blocked, excessive involvement in dealers and other business worries.

The media who received the report said that the identity of the whistleblower was different, but the media said it was "insider insider". Some media said it was "internal staff leaving", but from the content of the report, it should be the same person.

According to the Semir clothing prospectus, the operating income of the company in 2007 ~2009 was 1 billion 822 million yuan, 3 billion 322 million yuan and 4 billion 250 million yuan respectively, and the net profit attributable to the owners of the parent company was 150 million yuan, 443 million yuan and 687 million yuan respectively.

But according to the report, sales data and production costs of Semir terminal stores and Barbara terminal stores between 2003 and 2009 were very different from the wholesale and terminal retail data and actual data reported by Semir apparel and Semir group.

According to the information reported, from 2003 to 2009, the two largest Semir costumes.

According to the data provided by informants, the total tax evasion of Semir costumes from 2003 to 2009 amounted to about 3 billion 174 million yuan.

According to Semir's dress balance sheet, the company's taxes payable in the first half of 2007 to 2010 are 13 million 316 thousand and 900 yuan, 61 million 18 thousand and 800 yuan, 116 million 524 thousand and 600 yuan and 32 million 147 thousand and 100 yuan respectively.

Even if the tax payable fee is the highest in 2009, it will be calculated at 116 million 500 thousand in the year 2003, and the tax fee will be more than 800 million in 2003 to 2009.

As for the way of tax evasion by the informants, it is believed that most people are not familiar with the tax evasion method of Semir clothing: "in the wholesale link, the company pays large quantities of invoices, such as cash payment, and so on, to purchase garments from suppliers. The wholesale income is also not accounted for. In the retail terminal, sales revenue and costs are not accounted for, and so on, in conjunction with the large scale evasion of value added tax and income tax by their subordinate companies and stores."

Semir Costumes: will tax evasion be turned into "Luo Sheng men"?

According to the report, he has reported to the State Administration of Taxation, the local tax authorities, the Zhejiang provincial Securities Regulatory Commission and the relevant departments of the China Securities Regulatory Commission, as well as the Discipline Inspection Commission at all levels. Investigations in various fields are still in progress.

According to the reply received by the tax department from the informant to the media, the tax authorities receiving the report include the IRS of ten places, namely, Jiangxi, Hebei, Chongqing, Guizhou, Ningxia, Hainan, Guangxi, Tianjin, Zhejiang and Huizhou, and the Local Taxation Bureau of the two provinces of the two provinces.

Liu Junxiong, chief of the Hainan provincial Internal Revenue Bureau, told the economic observation network that the data of Semir clothing alleged by the informants to evade taxes were basically true in Hainan Province, and the difference between them was not more than 20%.

Mr. Li, general secretary of the Tianjin internal revenue service, told the media that Semir's investigation in Tianjin is not confined to information reported by informants.

For the contents of the reports reported by the informants, the results of the investigation were not too much to disclose. But at the same time, it revealed that Semir had also found other problems beyond the scope of the report. Semir has already paid taxes and 540 thousand yuan late.

Semir dress denied the claim of tax evasion.

Zheng Hongwei, director of Semir clothing, told the Daily reporters that the fact that Semir's clothes were suspected of tax evasion 3 billion did not exist in the media. This rumor is not in common sense, because if the rumors of tax evasion of 3 billion yuan are true, it means that Semir's clothing sales revenue should reach 100 billion yuan left and right.

Qiu Guang, chairman of Semir fashion, told reporters on "Economic Observer network": "our competitors are playing tricks, and the real situation is not so."

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The informant appealed: "if the inspection department can seriously spend some time, match the retail data of Semir over the years with the wholesale data of Semir headquarters on account, and verify the bank account (including personal), we can find out the fact that Semir and its distributors are evading large amounts of taxes."

Semir apparel: cash flow shrink, main expansion blocked

In addition to the recent deep down "

During the reporting period (1-6, 2009, 2008 and 2007) in 2010, the net cash flow generated by Semir's clothing business activities was -7108.67 yuan, 1 billion 38 million 121 thousand and 500 yuan, 394 million 153 thousand and 300 yuan and 41 million 71 thousand yuan respectively.

In the first half of 2010, the net cash flow generated by business activities decreased dramatically compared with the first three years.

Semir costumes explain that this is mainly due to seasonal reasons and companies in order to control procurement costs, lock supplier capacity and increase the proportion of prepaid accounts.

It can be seen from the consolidated balance sheet that the company's advance payments increased by nearly 2 hundred million in the first half of 2010.

The report disclosed that during the reporting period, the number of Semir clothing stores nationwide reached 5809, 5159, 4060, 2903, and expanded quickly.

But during the reporting period, the children's clothing business, which constituted its main business support, lost all the four subsidiaries in Shanghai, Beijing, Hubei and Tianjin. The net profit in the first half of 2010 was -443.45 million yuan.

The expansion of Semir clothing, another major component of its main business, is not so smooth in Beijing, Tianjin, Chongqing and Shenyang.

Data show that in the first half of 2010, except for the net profit of Shanghai Semir and Hangzhou Semir, which reached 43 million 576 thousand and 300 yuan and 4 million 131 thousand and 600 yuan respectively, the net profit of 4 subsidiaries of Beijing Semir, Tianjin Semir, Chongqing Semir and Shenyang Semir were all poor, -628.69 million yuan, 1 million 188 thousand and 400 yuan, 183 thousand yuan and 1 million 333 thousand yuan respectively, totaling -334.76 million yuan.

The economic reference Daily quoted an analyst's view that in the fierce market competition, Semir clothing, which is mainly engaged in the production of casual wear and children's clothing for young people, is facing the risk of expansion.

Semir apparel: excessive dependence on franchising dealers

The business structure of Semir clothing is a typical light asset mode of garment industry. There is no production factory of its own, garment production is OEM by other factories, and most of its sales channels rely on affiliate distributors. The number of direct retail outlets is very small, and it has been increasing gradually in recent years.

As of June 30, 2010, Semir clothing's casual wear brand Semir has 3556 sales outlets all over the country, including 3433 shops and 123 direct outlets. Another brand of children's wear Bala Bara has 2253 outlets nationwide, including 2136 stores and 117 outlets.

It is reported that these franchising dealers, financial and property allocation powers are in their own hands, Semir clothing has no right to interfere, Semir clothing to the franchised dealers are mainly affected by the shop layout, display of goods and so on.

In recent years, Semir apparel has acquired or established wholly owned subsidiaries in important cities such as Shanghai, Hangzhou, Beijing, Tianjin, Shenyang, Wuhan and Chongqing to set up direct stores to improve the situation of excessive dependence on franchising dealers.

According to the data released by Semir costumes, sales in franchising channels in 2010, 2009, 2008, and 2007 in 1-6, respectively, were 1 billion 925 million 342 thousand and 900 yuan, 3 billion 816 million 413 thousand and 900 yuan, 3 billion 113 million 449 thousand and 500 yuan and 1 billion 728 million 923 thousand and 300 yuan, accounting for 90.26%, 91.97%, 94.86% and 94.86% respectively.

It can be seen that sales of franchising channels, though declining year by year, have remained above 90%.

Semir Costumes: puzzling restructuring

Semir dress is reorganized by Semir group's subsidiary Barbara children's clothing Limited by Share Ltd, which is several times larger than its Semir group's other major industry, Semir's casual wear business.

Some financial professionals believe that the direct listing of Semir group is obviously more convenient and efficient than the current way of listing.

The controller finally chooses this tedious way, which is puzzling.

In addition, there is no detailed information on the sources of funds needed for the reorganization.

As of December 31, 2008, the issuer purchased the operating assets related to Semir's brand clothing business and the shareholding of Shanghai Semir and Hangzhou Semir, both of which were acquired in cash, to the Semir group and the actual controller.

The pfer price of the operating assets related to the Semir brand clothing business is determined according to the net assets determined by the corresponding assets up to 31 October 2008, and the trademarks and patents are pferred to the company without compensation by Semir group.

The evaluation results show that the value of the above mentioned operating assets except trademark patents is 487 million 400 thousand yuan.

The share pfer price of Shanghai Semir and Hangzhou Semir is determined on the basis of audited net assets value as at 31 October 2008, of which Shanghai Semir is 45 million 595 thousand and 600 yuan and Semir of Hangzhou is 1 million 959 thousand and 500 yuan.

The above three restructuring funds totals about $535 million.

But the cash flow statement of Semir clothing shows that the balance of cash and cash equivalents at the end of 2007 and 2008 were 76 million 866 thousand and 800 yuan and 172 million 869 thousand yuan respectively, compared with 535 million yuan.

How to solve Semir clothing is unknown.